Bank merger approved

First National Bank branches expect to open as Bank of the Ozarks on Aug. 1, according to bank officials.

Staff reports

SHELBY – First National Bank branches expect to open as Bank of the Ozarks on Aug. 1, according to bank officials.

First National, a community cornerstone for more than 140 years, took another historic step Wednesday on the road to becoming part of the Arkansas-based Bank of the Ozarks.

More than 91 percent of First National shareholders approved the bank’s merger into Bank of the Ozarks, according to First National officials.

“It’s a recognition of the opportunity to join with the bank of a caliber of the Bank of the Ozarks,” said Helen Jeffords, president and CEO of First National. “A number of people in recent months have inquired about this company, what they represent. A number of people got to read the proxy and see their performance and were quite impressed.”

Jeffords said Bank of the Ozarks will incorporate First National’s “hometown bank” and money tree logo into new signage at the region’s branches.

“We expect the merger will close July 31 and expect to open Aug. 1 as Bank of the Ozarks,” Jeffords said.

Bank of the Ozarks CEO George Gleason told The Star in February that the bank plans to retain most current First National employees, but he’s said it is “too soon” to discuss the reorganization of some of the local branches’ leadership jobs.

“Our goal is to make this a business-as-usual experience,” Gleason previously told The Star in reference to changes for customers. “They’ll have the same people interacting with them that they have in the past. We’ll make very few changes in products and services. I think a potential significant upside for customers is we’ll have a much larger legal lending limit so we’ll be able to meet larger loan needs.”

Gleason has stressed former First National customers will also have 117 more branches across the South where they can bank.

A historic step

In recent months the $67.8 million bank deal, first announced in January, was approved by federal and state regulators and the U.S. Securities and Exchange Commission. Shareholder approval was one of the final pieces to the deal being final this month, Gleason previously told The Star.

Descendants of early First National leaders, former employees and representatives of prominent Shelby families were among about 75 people gathered at the uptown bank headquarters for the announcement of the vote.

Leaders comment on the merger

Several First National and Bank of the Ozarks leaders commented following the announcement of the shareholder vote Wednesday.

“The Bible says two people should not be unequally yoked. It is the same with a merger,” Gleason said, referring to the similarities between the community banking priorities of First National and Bank of the Ozarks.

Gleason said moving forward the former First National branches will take advantage of the strengths of both banks. He called Bank of the Ozarks “disciplined” and “focused on planning” and said the bank has paid a dividend to its shareholders every quarter since the organization went public in 1997.

Bank leaders said First National has not paid shareholder dividends since 2010.

Gleason said the systems of both banks should be integrated by February 2014.

Bank of the Ozarks plans to continue to expand its operations in North Carolina, he said, because the state is “business-friendly” and has a “big economy,” he said.

Adelaide Craver, the First National’s board chairwoman, also spoke Wednesday.

She said First National’s staff has been “outstanding and has always done excellent community service.” Craver called shareholders “the rock” of any community organization.

Craver, who received the Order of the Long Leaf Pine this week, was honored with a standing ovation for her lengthy service.

First National Bank change timeline

1874 – Jesse Jenkins and H.D. Lee organize a private bank in Shelby, known as J. Jenkins and Co., at the corner of Lafayette and Warren streets.

1903 – Nationally chartered, name becomes First National Bank of Shelby.

1934 – Bank insured by Federal Deposit Insurance Corp.

1999 – First National acquires First Carolina Federal Savings Bank of Kings Mountain, signaling the bank’s expansion into Kings Mountain and Gaston County.

Jan. 24, 2013 – Announcement of plans for Bank of the Ozarks to purchase First National Bank in a $67.8 million deal

May 2013 – Federal and state regulators approve the bank merger

July 2013 – First National shareholders vote in approval of the bank merger with Bank of the Ozarks

Aug. 1, 2013 – First National branches expected to open as Bank of the Ozarks